10 Strong Sells: Screening for Overvalued Stocks to Short

Hedgephone submits:This weekend when most investors are hanging out with their families for Fathers Day, Hedgephone.com is hard at work looking for undervalued and overvalued issues to trade for the week ahead. With the markets beginning to break major technical levels of support including their 150-, 100- and 50-day moving averages, the short side looks to be a better trade than the long side. As we are fairly non-directional in our approach to investing, we are pretty much looking to sell bear call spreads on stocks that look far too expensive on the short side and to sell bull put spreads on stocks that appear undervalued to us based on cash flows, book values, competitive advantage, and brand equity. While we prefer to invest our money in shares of Coca Cola, McDonald's, Phillip Morris, Microsoft, Johnson and Johnson and physical gold and silver the overall market looks extremely ripe for aComplete Story »

Related

Hedgephone submits:At Hedgephone.com, we try to help individual investors create optimal long short equity portfolios so that they can dump their 2&20 managers and invest for themselves. While we are not making stock recommendations, we are trying to help investors make informed investment decisions which are based on free cash flows, discounts to tangible book value, macro economic research and above all else valuations and business moat.

This post Silver — Once and Future Money appeared first on Daily Reckoning.
Before the Renaissance, world money existed as precious metal coins or bullion. Caesars and kings hoarded gold and silver, dispensed it to their troops, fought over it, and stole it from each other. Land has been another form of wealth since antiquity. Still, land is not money because, unlike gold and silver, it cannot easily be exchanged, and has no uniform grade.

NEW DELHI: Cans of Coca-Cola brands have hit a high of Rs 100 in Coke-exclusive mid-tier mass restaurants such as McDonald's and Haldiram's. The same cans are available for Rs 30 in retail stores. The prices have risen from Rs 60 to Rs 100 this summer, and all stores are now charging Rs 100 since the past fortnight. All the prices are printed on the cans. Trade insiders said the restaurants are charging a mark-up of over Rs 50 now on the cans to take advantage of peak summer.

By Rajiv Tarigopula:Recently, one of my Seeking Alpha colleagues posted a piece on what he considered his "core holdings" - stocks (most generally regarded as blue-chip investments) that he would buy and hold forever.

Article written by Prieur du Plessis, editor of the Investment Postcards from Cape Town blog.Adam Hewison, charting strategist of INO.TV, brings you another edition of his invaluable service of daily technical updates on the ups and downs of various markets. This short analysis is a great tool for keeping one’s finger on the pulse and timing the markets.

Hedgephone submits:When screening for short positions, remember that the most important factor in making money from the short side is discovering fraudulent financial statements or companies that are simply never going to grow into their valuations.